Currency Control

Document path Reference Contents > Ledgers Nominal or General Ledger > Currency Control

Sales, Jobs and Purchase Orders can be prepared in currencies other than the normal system currency. Any currency that you wish to use must be defined in the currency file.

Currency maintenance is available either in the "System Manager" section or in the "General Ledger" menu of the "Ledgers" main menu.

Each Customer and Supplier can be given a default currency for Sales, Jobs and Purchase Orders.

Parts can have up to five currency prices. For this, the currency symbols must be defined in the Company Details Maintenance window.

Within "Ledgers", General Ledger accounts can be foreign currency accounts and within Account Payable and Receivable accounts mixed currencies can coexist within the same account.

Exchange rates are held everywhere as floating point numbers. This permits up to 14 places of decimal accuracy but displays them on occasion in scientific notation: E.G. 0.0256987 will be displayed as 2.56987e-2, and 1957.61 as 1.95761e+3.

The window has three tab panes.

Adjust Rate

Setup Currencies

Rate Changes Log

Adjust Rate

Currency Control - Adjust Rate pane

Use this tab to adjust exchange rates.

Field

Description

Currency list

The list of all currencies in the system. Click to select and modify.

Currency code

Currency Rates. Currency symbol code. {CURFILE.CURCODE char 3}

Cent

Currency Rates. Cent character (e.g. c). {CURFILE.CURCENT char 1}

Name

Currency Rates. Currency name. {CURFILE.CURNAME char 20}

Last changed

Currency Rates. Currency updated date+time. {CURFILE.CURUPDT date datetime}

Exchange rate

Currency Rates. Exchange rate (default currency = this currency * rate). {CURFILE.CUREXCH number float}

The value of the currency in relation to 1 unit of your normal currency. For example, if your normal currency is US Dollars and you wish to deal in UK Pounds, the exchange rate will be approximately 0.670000 (US$ being worth approximately UKú0.67). You can use up to 14 decimal places, however normal currency trading is to 4 decimals (6 in Euro zone).

Reciprocal rate

The value of the reciprocal of the foreign currency exchange rate.

EMU

European Monetary Union

With this extended area you can:
1. Calculate an exchange rate from its reciprocal.
2. Enter a triangulation currency (see Note) which must be already defined as a normal currency. Then enter the exchange rate (or reciprocal) of the currency you are creating.
3. Enter a value in the currency or your local currency for which ECU triangulation rounding will apply. All three will compute a new exchange rate for your new currency, which can be accepted with an Ok.

EMU Triangulation currency

Currency Rates. Triangulation currency symbol. {CURFILE.CURTRIC char 3}

EMU Triangulation rate

Currency Rates. Triangulation currency rate (CURCODEs per CURTRIR). {CURFILE.CURTRIR number float}

Reciprocal rate

Value of the reciprocal of the rate entered for the currency against the triangulation currency.

Rounding in currency

Round value in the foreign currency, if used effects the triangulation conversion when editing a rate.

Rounding in local

Round value in your local currency, if used effects the triangulation conversion when editing a rate.

Button

Action

Print Analysis of Outstanding A/P and A/R Currency Transactions

This provides a report for all A/P and A/R transactions that have some due amount and are in a foreign currency. It shows the local value of the transaction and the value calculated from the current currency exchange rate. The difference is potentially the exchange loss or profit that will occur, were the rates to remain as they currently are. You can change the Destination of the report by selecting the 'Report Destination' menu command. This function is only available if you have the Ledgers license option.

Tip TIP: This can be used for assessing a Provision for Foreign Exchange Movement, which would typically be a balance sheet account adjusted by way of a month-end journal.

Customisation CUSTOM CAPABILITY: This is subject to the custom report system and your design, modelled on the standard rAcCurAnalysis, can be added to your settings using type LeCurA with no subtype.

Print List

Will cause a report to be printed of the subject matter. You can change the Destination of the report by selecting the 'Report Destination' menu command.

Revert to Saved

To abandon any changes and revert to the last saved set.

Apply New Rates

To apply the new listed rates you have changed. You will be asked for a log comment.

Re-value System

To re-value Orders and Accounts to the latest currency rates, where applicable. This function opens the Currency Re-valuation window.

Note NOTE ON EMU

This note is applicable to users concerned with "Euro compliance" when within the member countries of the European Union.

There are numerous interpretations of what "Euro compliance" really means. The only enforced compliance relevant to accounting systems revolves around currency conversion within currencies that belong to member countries of the European Monetary Union (EMU). The rules, devised by Brussels bureaucrats and civil servants of member states, were enacted by the Mastericht Treaty and is known as "Triangulation".

Instead of allowing currencies within the EMU to be convertible using traditional methods they have devised a method which calls for all amounts of one currency to be first converted into Euro denominations, rounded to 3 places of decimal, and then for those Eros to be converted into the end currency with a final rounding to 2 places of decimal.

French Francs      to       Euro        to          Deutschmarks
200.00  divide by 6.63186  37.697   multiply by 1.97738    74.54

A further requirement is that all exchange rates must be expressed to 6 significant digits rather than the standard 4 decimal places.

These two requirements lead to significant difficulties when applied to a conventional database accounting system. Firstly, the calculation itself is different depending on the currencies involved. Secondly, the EMU conversion result depends on the value of the transaction due to the intermediate rounding stage. Thirdly, the resolution of exchange rates is not consistent in terms of decimals (e.g. Irish Pound 0.796244, Italian Lira 1957.61).

The bureaucrats of Brussels clearly were not systems designers and gave scant regard for the costs of implementing their convoluted ideas. Compromises must be made, and Caliach have made the following:

1. Exchange rates are held everywhere as floating point numbers. This permits up to 14 places of decimal accuracy but displays them on occasion in scientific notation (e.g. 0.0256987 will be displayed as 2.56987e-2, and 1957.61 as 1.95761e+3.

2. Currency conversion is always by simple multiplication or division by the direct exchange rate. Triangulation is not implemented at a transaction level.

3. Triangulation is provided for in the generation of practical exchange rates. The above does not apply to "conversion" of the entire system from a non-Euro base (local) currency into Euro. This will require a utility that may apply triangulation as part of the conversion process.

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Setup Currencies

Currency Control - Setup Currencies pane

Use this pane to setup a new currency.

Field

Description

Currency symbol

Currency Rates. Currency symbol code. {CURFILE.CURCODE char 3}

The symbol, of up to three characters, you enter here identifies the currency uniquely. You must NOT enter your local currency which is defined in the Company Details Maintenance window. Once you have created a currency record, you will not be able to change the symbol.

Decimal character

Currency Rates. Cent character (e.g. c). {CURFILE.CURCENT char 1}

Tip TIP: If you use the # (hash or pound) character as your currency decimal character the cent portion of an amount printed in words on documents such as sales orders, invoices and cheques is suppressed. This feature is provided for large scale currencies such as Rupees and Yen.

Name

Currency Rates. Currency name. {CURFILE.CURNAME char 20}

EMU triangulation currency

Currency Rates. Triangulation currency symbol. {CURFILE.CURTRIC char 3}

Button

Action

Cancel

Aborts the process currently in session. The keyboard equivalent is the Esc key for Windows computers and Command-.(full stop or period) for the Mac.

Save

Click to confirm and save the new currency.

New

This will create a new (normally blank) record in the file. You will then be able to enter details for the record. Then confirm with an OK, or abandon the New record with a Cancel.

Delete

Execute this button to permanently remove the currently selected record from the file. If you are permitted to delete the item, you will be asked for confirmation, otherwise an explanation will be given.

When you attempt to delete a currency using this button, the system will first check that the currency is not used elsewhere. This can be a slow process. Checks are carried out that the currency is not used in:
1. Company Details part currency prices
2. Invoices that have not yet been paid
3. Jobs
4. General Ledger accounts
5. Purchase Orders
6. Sales Orders
7. Customers
8. Suppliers

Having completed the checks without locating any references to the currency, you will be asked to confirm the deletion, otherwise you will be prevented from deleting it.

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Rate Changes Log

Currency Control - Rate Changes Log pane

Use this pane to view the logged history of rate changes.

Field

Description

Changes Log List

The changes log for the selected currency above. You can edit the comments within the list.

Tip TIP: To edit cells in the list, select the line and click in the cell and hover the mouse over the cell. I.E. click once and pause with no mouse movement. The cell will then expand into an editable box in which you can enter different data. On leaving the box with any action like a tab or click elsewhere, the data is verified and the list returns to normal with the new data shown in the cell.

Button

Action

Print Log

Will cause a report to be printed of the subject matter. You can change the Destination of the report by selecting the 'Report Destination' menu command.

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See also: -

Compiled in Program Version 3.10. Help data last modified 22 MAY 2008 07:42. Class wAcCurrency last modified 22 MAR 2012 04:12:46.

Document path Reference Contents > Ledgers Nominal or General Ledger > Currency Control